ICRIER-OpenAI Study: AI Transforming Work Organization in India's IT Industry
A comprehensive new study conducted by the Indian Council for Research on International Economic Relations (ICRIER) with support from OpenAI has revealed that artificial intelligence (AI) is not causing mass job displacement within India's information technology sector. Instead, the research indicates AI is fundamentally reshaping how work is organized, significantly increasing productivity, and transforming employee roles across the industry.
Detailed Assessment of Generative AI Adoption
The study, titled "AI and Jobs: This Time Is No Different," was prepared through an extensive survey of 650 IT companies spread across 10 major Indian cities between November 2025 and January 2026. This research provides a detailed, data-driven assessment of generative AI adoption specifically within the Indian context, examining critical shifts in hiring patterns, occupational demand, productivity outcomes, and workforce skilling initiatives.
Ronnie Chatterji, Chief Economist at OpenAI, commented on the findings, stating, "We are observing a significant shift in how work is organized, where AI appears to be complementing human talent rather than replacing it. This data offers a valuable window into the transition currently underway within India. The focus now should shift toward practical steps needed to help workers align their skills with the advancing capabilities of AI. Currently, only 4% of firms have trained more than half their workforce in AI technologies, presenting a substantial opportunity for growth and development."
How Companies Report AI Changing Their Businesses
Companies participating in the survey reported a slight easing in hiring activities, largely confined to entry-level positions, while hiring at mid and senior management levels has remained steady. Researchers emphasize that this pattern aligns with broader post-pandemic trends within the IT sector and should not be attributed solely to AI adoption.
Interestingly, roles often perceived as more vulnerable to AI automation—including software developers and database administrators—continue to experience rising demand. This suggests that generative AI is primarily being deployed to support and enhance productivity in technical and analytical work functions, rather than to eliminate these positions entirely.
Evidence-Based Insights for Policymakers
Shekhar Aiyar, Director & Chief Executive of ICRIER, elaborated on the study's significance, saying, "While everyone has opinions on this matter, the ICRIER–OpenAI study brings concrete evidence to the table. The authors have complemented survey findings with in-depth interviews with Indian IT industry leaders to better understand the true impact of generative AI. The results should reassure Indian policymakers without inducing complacency. Although India's IT sector appears to be managing AI adoption relatively well thus far, many firms remain insufficiently prepared for the challenges and opportunities that lie ahead."
The research methodology combined quantitative survey data with qualitative insights from industry leaders, providing a nuanced perspective that counters widespread concerns about technology-driven unemployment. The study highlights how AI is creating new organizational structures and workflow efficiencies while simultaneously presenting both challenges and opportunities for workforce development and skill alignment in one of India's most vital economic sectors.
